Toronto’s real estate market is gearing up for an eventful 2024, with a complex mix of rising home sales and varying price forecasts. The end of 2023 witnessed a significant increase in home sales within the Greater Toronto Area (GTA), showing a 10% rise compared to the previous year. This uptick indicates a possible resurgence in the market’s activity. However, new listings in the GTA have declined by 5% year-over-year, while active listings surged by 19% in December 2023, suggesting a shift in market dynamics.
The predictions for 2024’s housing market in Toronto are mixed. Some experts anticipate modest gains in house prices during the first half of the year, with more considerable increases in the latter half. This trend is partly driven by expected interest rate cuts later in the year, alongside the public’s adjustment to generally higher rates. The anticipation of interest rate cuts, potentially starting as early as March 2024, could bring much-needed relief to mortgage borrowers and influence buyer behaviour in the market.
Despite the optimistic outlook on sales and prices, affordability remains a significant challenge, particularly for first-time homebuyers. The high cost of housing in Toronto continues to pose hurdles for many families who find it challenging to qualify for new mortgages at current rates. Furthermore, the strong rental market has led to a situation where potential sellers are opting to rent out their old homes instead of selling them, which might contribute to the cooling demand in the housing market.
In addition to the market’s internal dynamics, external factors such as government policies and immigration trends also play a role. The issue of NIMBYism and municipal regulations is influencing the housing market forecast for Toronto and its neighbouring regions. With a significant influx of immigrants expected in the GTA in the next two years, housing demand is likely to be affected. However, builders are reportedly pulling back on construction projects due to anticipated buyer withdrawal and economic recession, further complicating the market scenario.
As Toronto’s housing market navigates through these trends and forecasts, potential buyers and sellers are advised to stay informed and consider consulting real estate professionals for tailored advice and insights into the 2024 market landscape.
